Oracle’s Larry Ellison guarantees $40.4 billion in equity financing for Paramount Skydance’s Warner Bros bid
Oracle co-founder Larry Ellison has agreed to personally guarantee $40.4 billion in equity financing to support Paramount Skydance’s all-cash bid for Warner Bros. Discovery, according to a regulatory filing released Monday.
The personal guarantee is likely to strengthen the financing structure of the deal, which was objected to by the Warner Bros board of directors, which had previously rejected Paramount’s offer in favor of Netflix. Reuters noted. Paramount said the revised terms did not change its $30 per share all-cash offer.
Following the news, Warner Bros. Discovery shares rose 2.5% in pre-market trading, while Paramount Skydance shares rose about 1.6%.
The competition for Hollywood’s most valuable assets continues to intensify with no clear outcome in sight. The ultimate winner will gain a significant advantage in the streaming wars by securing a vast library of content long sought after by major media buys.
Ellison also agreed to keep the Ellison family’s trust intact and not cancel it or move its assets while the transaction is pending.
“In an effort to address Warner Bros.’ amorphous need for ‘flexibility’ in interim operations, Paramount’s revised proposed merger agreement offers Warner Bros. greater flexibility regarding debt refinancing transactions, representations and interim operating agreements,” Paramount said in a statement.
‘Paramount is in a precarious situation’
According to a Reuters report, PP Foresight analyst Paolo Pescatore said: “Paramount remains in a precarious position and is making a last-ditch effort to avoid being overshadowed.” Paolo said the improved offer was a step in the right direction, but he believed it was unlikely to be enough.
The report noted that Paramount increased its regulatory reverse termination fee from $5 billion to $5.8 billion and extended the tender offer deadline to Jan. 21, 2026, to comply with the rival agreement.
The offer comes after Warner Bros. urged shareholders to reject Paramount’s $108.4 billion bid for the entire company, including its cable television assets, citing concerns about the deal’s financing and the lack of a full guarantee from the Ellison family.
However, some Warner Bros. investors, including its fifth-largest shareholder, Harris Associates, have indicated they would consider Paramount’s revised offers if the company submits a stronger offer and resolves issues with the terms of the transaction.
